diff --git a/src/network/bridge_driver.c b/src/network/bridge_driver.c
index 0b43a67e8c..43f2ae274e 100644
--- a/src/network/bridge_driver.c
+++ b/src/network/bridge_driver.c
@@ -710,9 +710,6 @@ networkDnsmasqConfContents(virNetworkObjPtr network,
                       "strict-order\n",
                       network->def->name);
 
-    if (!network->def->dns.forwardPlainNames)
-        virBufferAddLit(&configbuf, "domain-needed\n");
-
     if (network->def->dns.forwarders) {
         virBufferAddLit(&configbuf, "no-resolv\n");
         for (i = 0; i < network->def->dns.nfwds; i++) {
@@ -728,14 +725,13 @@ networkDnsmasqConfContents(virNetworkObjPtr network,
                           network->def->domain);
     }
 
-    if (network->def->domain || !network->def->dns.forwardPlainNames) {
-        /* need to specify local even if no domain specified, unless
-         * the config says we should forward "plain" names (i.e. not
-         * fully qualified, no '.' characters)
+    if (!network->def->dns.forwardPlainNames) {
+        virBufferAddLit(&configbuf, "domain-needed\n");
+        /* need to specify local=// whether or not a domain is
+         * specified, unless the config says we should forward "plain"
+         * names (i.e. not fully qualified, no '.' characters)
          */
-        virBufferAsprintf(&configbuf,
-                          "local=/%s/\n",
-                          network->def->domain ? network->def->domain : "");
+        virBufferAddLit(&configbuf, "local=//\n");
     }
 
     if (pidfile)
diff --git a/tests/networkxml2confdata/dhcp6-network.conf b/tests/networkxml2confdata/dhcp6-network.conf
index 5fde07fbd1..92ea2a4caa 100644
--- a/tests/networkxml2confdata/dhcp6-network.conf
+++ b/tests/networkxml2confdata/dhcp6-network.conf
@@ -5,10 +5,10 @@
 ##
 ## dnsmasq conf file created by libvirt
 strict-order
-domain-needed
 domain=mynet
 expand-hosts
-local=/mynet/
+domain-needed
+local=//
 except-interface=lo
 bind-dynamic
 interface=virbr0
diff --git a/tests/networkxml2confdata/nat-network-dns-forwarders.conf b/tests/networkxml2confdata/nat-network-dns-forwarders.conf
index ebca289575..5f95f77b02 100644
--- a/tests/networkxml2confdata/nat-network-dns-forwarders.conf
+++ b/tests/networkxml2confdata/nat-network-dns-forwarders.conf
@@ -5,10 +5,10 @@
 ##
 ## dnsmasq conf file created by libvirt
 strict-order
-domain-needed
 no-resolv
 server=8.8.8.8
 server=8.8.4.4
+domain-needed
 local=//
 except-interface=lo
 bind-dynamic
diff --git a/tests/networkxml2confdata/nat-network-dns-hosts.conf b/tests/networkxml2confdata/nat-network-dns-hosts.conf
index 2577882958..021316f9c7 100644
--- a/tests/networkxml2confdata/nat-network-dns-hosts.conf
+++ b/tests/networkxml2confdata/nat-network-dns-hosts.conf
@@ -5,10 +5,10 @@
 ##
 ## dnsmasq conf file created by libvirt
 strict-order
-domain-needed
 domain=example.com
 expand-hosts
-local=/example.com/
+domain-needed
+local=//
 except-interface=lo
 bind-dynamic
 interface=virbr0
diff --git a/tests/networkxml2confdata/netboot-network.conf b/tests/networkxml2confdata/netboot-network.conf
index b6f3c23f15..ce33176e15 100644
--- a/tests/networkxml2confdata/netboot-network.conf
+++ b/tests/networkxml2confdata/netboot-network.conf
@@ -5,10 +5,10 @@
 ##
 ## dnsmasq conf file created by libvirt
 strict-order
-domain-needed
 domain=example.com
 expand-hosts
-local=/example.com/
+domain-needed
+local=//
 except-interface=lo
 bind-interfaces
 listen-address=192.168.122.1
diff --git a/tests/networkxml2confdata/netboot-proxy-network.conf b/tests/networkxml2confdata/netboot-proxy-network.conf
index 1e969fac6b..f4d3880210 100644
--- a/tests/networkxml2confdata/netboot-proxy-network.conf
+++ b/tests/networkxml2confdata/netboot-proxy-network.conf
@@ -5,10 +5,10 @@
 ##
 ## dnsmasq conf file created by libvirt
 strict-order
-domain-needed
 domain=example.com
 expand-hosts
-local=/example.com/
+domain-needed
+local=//
 except-interface=lo
 bind-interfaces
 listen-address=192.168.122.1